Dancing Gas Gauge

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Sounds like a bad ground.
First thing I did when I got the 62 was check/replace ALL grounds.
 
Open the access panel in the middle of your floor under your carpet in the rear of your truck, clean off the connections, you can also follow that wire from the centre (CDN spelling), where the connections are, the wire travels to the driver's side inner quarter panel, there, it joins up with the rest of the wiring harness.
 

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